Smart Consumers Demand More Functional Beverage Options

Smart Consumers Demand More Functional Beverage Options

FinancialBuzz.com News Commentary

PR Newswire

NEW YORK, Feb. 27, 2019

NEW YORK, Feb. 27, 2019 /PRNewswire/ -- Consumers all around the world drink a variety of beverages, whether it's soda, coffee, tea, energy drinks, or water. The marketplace is very diverse and offers consumers endless options. The industry is mainly being bolstered by sales within the carbonated drinks segment, however, the growing health awareness and lifestyle changes that the population is going through is causing the rapid emergence of functional drinks and bottled water. Governments are also implementing policies in order to raise societal awareness. While the two segments have always been prevalent, they were constantly overshadowed by the wide exposure of carbonated beverages. In combination with the dominance of carbonated beverages and the acceleration within the functional and bottled water segments, the marketplace is expected to witness immense growth. According to data compiled by Grand View Research, the global non-alcoholic beverage market was valued at USD 967.3 Billion in 2016 and is expected to grow at an estimated CAGR of 5.8% between 2017 to 2025. Koios Beverage Corp. (OTC: KBEVF) (CSE: KBEV), Walmart Inc. (NYSE: WMT), Costco Wholesale Corporation (NASDAQ: COST), Target Corporation (NYSE: TGT), GNC Holdings, Inc. (NYSE: GNC) 

The functional beverage segment, in particular, is expected to witness the fastest growth rate within the product segment over the forecast period. The research suggests that the growth is attributable to the rise of smart consumers that are more value oriented and concerned toward health. Specific companies have delved into the sector by targeting certain consumers in order to capture the experience of valuable and critical customers. With the information and data, companies are developing health-based products that are high in demand. Despite the growth of the functional drink segment, consumers are still heavily engaged in other sectors such as fruit beverages and sports drinks. "Growth in specialty food and beverage categories may be constrained, as the average consumer's food budget shrinks," states Frost and Sullivan Global Director of Agriculture and Nutrition, Christopher Shanahan. "The economic slowdown is expected to temporarily constrain consumer spending on food and beverages that employ premium pricing strategies. However, the demand for products with enhanced health and wellness benefits is expected to remain in place. Consumers are going to maintain their health and wellness goals by clipping more coupons and choosing more store or private label brand alternatives."

Koios Beverage Corp. (OTC: KBEVF) (CSE: KBEV) is also listed on the Canadian Securities Exchange under the ticker (CSE: KBEV). Just earlier today the company announced breaking news that, "it has signed a vendor agreement with Walmart Inc., the world's largest retailer.

Walmart Inc. (NYSE: WMT) ("Walmart") is a multinational retail giant that operates a chain of hypermarkets, discount department stores, and grocery stores across the globe.

Walmart has more than 11,200 stores operating under 55 banners in 27 countries around the world. It has eCommerce websites in 10 countries. Each week, nearly 265 million customers and members shop at Walmart.

"Working with the world's largest retailer is an honor," said Koios CEO Chris Miller. "Walmart has begun carving out significant shelf space in select locations to build the next generation of better-for-you brands, and we are truly excited to be one of them. Making the world a healthier place is our mission and our relationship with Walmart will be a tremendous catalyst for reaching a mass audience for our brand."

Koios developed a proprietary nootropic formula that has been shown to enhance brain function, including mental focus, memory, and concentration. Its formula includes superfoods such as lion's mane mushroom, which contains bioactive substances with beneficial effects on the body, brain, heart, and gut. The Company produces the formula as a line of healthy, organic beverages and drink powders.

Launched last year, the Koios brand had been carried primarily in several health store chains, and various grocery chains until December when GNC - the largest health and wellness company in North America - initiated a vendor partnership.

Now, Walmart will soon be adding the Koios beverage line to its new functional beverage set.  Initially, Koios products will be available in 1,094 Walmart locations across the United States.  The retail giant will carry Pear Guava, Blood Orange and Peach Mango beverages.  The products will also be available through Walmart's online portal at www.walmart.com and will be available in stores April 1st of 2019.

Miller continues, "The vendor agreement is a pivotal development for a Denver-based startup that has become a standout in the functional beverage industry."

Koios has been rapidly expanding its production capacity and its distribution network across Colorado and more widely across the United States. The Company works in the fast-growing 'functional beverage' space.

About Koios Beverage Corp. - The Company is an emerging functional beverage company which has an available distribution network of more than 5,000 retail locations across the United States in which to sell its products. Koios has relationships with some of the largest and most reputable distributors in the United States, including Europa Sports, Muscle Foods USA, KeHE, and Wishing-U-Well.  Koios is also the sole owner of Cannavated Beverage Corp., a subsidiary that develops beverage products and formulas for the growing CBD market. Koios uses a proprietary blend of nootropics and natural organic compounds to enhance human productivity without using harmful chemicals or stimulants.  Koios products have been shown to enhance focus, concentration, mental capacity, memory retention, cognitive function, alertness, brain capacity and create all day mental clarity.  Its ingredients are specifically designed to target brain function by increasing blood flow, oxygen levels and neural connections in the brain. Koios produces one of the only drinks in the world infused with MCT oil. MCT oil is derived from coconuts and has been shown to help the body burn fat more effectively, create lasting energy from a natural food source, produce ketones in the brain, allowing for greater brain function and clarity, support healthy hormone production and improve immunity. For more information, please visit our website: https://www.koiosbeveragecorp.com."

For our latest "Buzz on the Street" Show featuring Koios Beverage Corp. recent corporate news, please head over to: https://www.youtube.com/watch?v=AHCBe0hpsqU

Walmart Inc. (NYSE: WMT) helps people around the world save money and live better - anytime and anywhere - in retail stores, online, and through their mobile devices. Recently, Walmart acquired Aspectiva, an Israeli-based start-up, for an undisclosed sum. As part of the acquisition, Aspectiva will be joining Walmart's Store N° 8, the incubation arm launched by the retailer in 2017 to uncover the ideas that will transform the future of commerce. Aspectiva's Natural Language Processing capabilities will help Walmart further enhance the end-to-end shopping experience. The Aspectiva team joined Store N° 8 on Feb. 25, 2019, and will continue to operate from Aspectiva's offices in Tel Aviv. "Aspectiva has developed incredibly sophisticated machine learning techniques and natural language processing capabilities, both of which are areas we believe will have profound impact on how customers will shop in the future. Israel is a hotbed of tech talent and innovation. We're thrilled to join the growing community of entrepreneurs in Israel and see it expand within Aspectiva," said Lori Flees, Principal of Store N° 8.

Costco Wholesale Corporation (NASDAQ: COST) operates an international chain of membership warehouses, mainly under the "Costco Wholesale" name, that carry quality, brand name merchandise at substantially lower prices than are typically found at conventional wholesale or retail sources. Costco Wholesale Corporation recently announced its operating results for the first quarter (twelve weeks) of fiscal 2019, ended November 25, 2018. Net sales for the first quarter were USD 34.31 Billion, an increase of 10.3% from US 31.12 Billion during the first quarter last year. Net income for the quarter was USD 767 Million, or USD 1.73 per diluted share, compared to USD 640 Million, or USD 1.45 per diluted share, last year. This year's first quarter benefited from a USD 59 Million (USD 0.13 per diluted share) tax benefit related to stock-based compensation and a USD 27 Million (USD 0.06 per diluted share) tax benefit related to the implementation of the 2017 Tax Act. In addition, the quarter includes a charge of USD 43 Million (USD 31 Million after-tax, USD 0.07 per diluted share) for an adjustment to our estimate of breakage on rewards earned prior to Fiscal Year 2019 for the Citi/Visa co-branded credit card program. Last year's first quarter benefited from a USD 41 Million (USD 0.09 per diluted share) tax benefit related to stock-based compensation.

Target Corporation (NYSE: TGT), Minneapolis-based, serves guests at more than 1,800 stores and at Target.com. Target Corporation recently announced that its comparable sales in the combined November/December period grew 5.7%, on top of 3.4% growth in the same period last year. Results reflected strong traffic, positive store comps and comparable digital sales growth of 29%. Target expects that 2018 will be the fifth consecutive year in which its digital sales grow more than 25%. Target continues to expect fourth quarter 2018 comparable sales growth of approximately 5%. Brian Cornell, Chairman and Chief Executive Officer of Target Corporation, said, "We are very pleased with Target's holiday season performance, which came on top of really strong results in the same period last year. This performance demonstrates the benefit of placing our stores at the center of every way we serve our guests, including both in-store shopping and digital fulfillment. Given our fourth quarter outlook, we are on track to deliver Target's strongest full-year comparable sales growth since 2005, market-share gains across all of our core merchandising categories, and double digit growth in Adjusted EPS. In 2019, we expect to build on this momentum as we gain further scale in our fulfillment capabilities and deliver profitable growth throughout the year."

GNC Holdings, Inc. (NYSE: GNC) - is a global health and wellness brand that helps people live well. GNC Holdings, Inc. recently announced the grand opening of its experiential store in South Hills Village Shopping Center in Pittsburgh, Pa. The new store will incorporate several unique offerings to allow consumers to customize their wellness regimen. Becoming a one-stop shop for all health and wellness needs, the store will offer several installations, including: GNC Smoothie Lab: Order delicious and healthy drinks, grab-and-go snacks and other prepared meals made with high-quality ingredients and top GNC products at the GNC Smoothie Lab; Body Composition Analysis: Step onto the InBody Body Composition Analyzer to gain insights on your health and find the right solutions for your lifestyle; Registered Dietitian Consultations: The in-house dietitian will be available to provide free consultations to help you develop a customized plan tailored to your specific health goals. "This experiential store represents the continuous innovation and consumer-focused mindset that is the foundation of GNC," said Joe Gorman, EVP of Operations at GNC. "We are focused on providing a personalized approach to wellness and now GNC consumers have the opportunity to experience this firsthand and connect with us in a truly customized way."

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